HomeMy WebLinkAboutMinutes - February 6, 2019LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, FEBRUARY 6, 2019
C-1 Call to Order / Roll Call
The City Council Closed Session meeting of February 6, 2019, was called to order by
Mayor Chandler at 6:17 p.m.
Present: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne,
and Mayor Chandler
Absent: Council Member Mounce
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
NOTE: Council Member Nakanishi arrived at 6:23 p.m.
C-2 Announcement of Closed Session
a) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City
Manager (Labor Negotiators), Regarding Fire Mid -Management, International Brotherhood
of Electrical Workers, Lodi Police Dispatchers Association, Police Officers Association of
Lodi, and Police Mid -Management Pursuant to Government Code §54957.6 (CM)
b) Sale of Former Fire Station No. 2 Property Located at 705 East Lodi Avenue, Lodi, CA;
Negotiating Parties are Nicole Key, Managing Director, Cushing and Wakefield, for Buyers
and Stephen Schwabauer for City of Lodi; Price and Terms of Sale Are Under Negotiation;
Government Code §54956.8 (CM)
C-3 Adjourn to Closed Session
At 6:17 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above
matters. The Closed Session adjourned at 6:56 p.m.
C-4 Return to Open Session / Disclosure of Action
At 7:06 p.m., Mayor Chandler reconvened the City Council meeting, and City Attorney Magdich
disclosed the following actions.
Item C -2a) was discussion and direction given with no reportable action.
With regard to Item C -2b), it was reported the City is in escrow on the former Fire Station No. 2
property and that Council authorized a purchase price of $415,000 with a credit of up to $14,300
for remediation of mold and asbestos. Escrow is expected to close in two weeks.
A. Call to Order / Roll Call
The Regular City Council meeting of February 6, 2019, was called to order by Mayor Chandler at
7:06
p.m.
Present: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne,
and Mayor Chandler
Absent: Council Member Mounce
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
B. Presentations — None
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C. Consent Calendar (Reading; Comments by the Public; Council Action)
Council Member Johnson made a motion, second by Council Member Nakanishi, to approve the
following items hereinafter set forth, except those otherwise noted, in accordance with the
report and recommendation of the City Manager.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
C-1 Receive Register of Claims for December 21, 2018 through January 17, 2019 in the
Amount of $6,225,709.16 (FIN)
Claims were approved in the amount of $6,225,709.16.
C-2 Approve Minutes (CLK)
The minutes of January 8, 2019 (Shirtsleeve Session), January 15, 2019 (Shirtsleeve Session),
January 15, 2019 (Special Meeting), January 16, 2019 (Regular Meeting), and January 22, 2019
(Shirtsleeve Session) were approved as written.
C-3 Approve Specifications and Authorize Advertisement for Bids for Janitorial Services for
City Facilities (PW)
Approved specifications and authorized advertisement for bids for janitorial services for City
facilities.
C-4 Adopt Resolution Rescinding Resolution No. 2018-152 and Authorizing Purchase of
Ultraviolet Disinfection Parts for White Slough Water Pollution Control Facility from DC
Frost Associates, Inc., of Walnut Creek ($104,654) (PW)
Adopted Resolution No. 2019-06 rescinding Resolution No. 2018-152 and authorizing the
purchase of ultraviolet disinfection parts for White Slough Water Pollution Control Facility from
DC Frost Associates, Inc., of Walnut Creek, in the amount of $104,654.
C-5 Adopt Resolution Authorizing Sole Source Purchase of One Digester Recirculation Wemco
Pump for White Slough Water Pollution Control Facility from Muniquip, LLC, of Roseville
($21,670) (PW)
Adopted Resolution No. 2019-07 authorizing the sole -source purchase of one digester
recirculation Wemco pump for White Slough Water Pollution Control Facility from Muniquip, LLC,
of Roseville, in the amount of $21,670.
C-6 Adopt Resolution Awarding Contract for Granular Activated Carbon Replacement, Well No.
4R and Well No. 22, to Calgon Carbon Corporation, of Moon Township, Pennsylvania
($230,222); Authorizing City Manager to Execute Change Orders ($50,000); and
Appropriating Funds ($280,222) (PW)
Adopted Resolution No. 2019-08 awarding the contract for Granular Activated Carbon
Replacement, Well No. 4R and Well No. 22, to Calgon Carbon Corporation, of Moon Township,
Pennsylvania, in the amount of $230,222; authorizing the City Manager to execute change
orders, in the amount of $50,000; and appropriating funds in the amount of $280,222.
C-7 Accept Improvements Under Contract for Vinewood Pump Station Electrical Improvements
(PW)
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Accepted improvements under contract for Vinewood Pump Station Electrical Improvements.
C-8 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement
with Devices for Life, LLC, of Anaheim Hills, for Automated External Defibrillation Devices
and Compliance Services ($27,000) (CA)
Adopted Resolution No. 2019-09 authorizing the City Manager to execute Professional Services
Agreement with Devices for Life, LLC, of Anaheim Hills, for automated external defibrillation
devices and compliance services, in the amount of $27,000.
C-9 Authorize City Manager to Execute Amendment to Extend Term of Professional Services
Agreement with Michael Baker International, of Rancho Cordova, for Community
Development Block Grant Administration and Expand the Scope of Services to Include
Housing Program Support Services ($223,000) (CM)
Authorized the City Manager to execute Amendment to extend term of Professional Services
Agreement with Michael Baker International, of Rancho Cordova, for Community Development
Block Grant administration and expand the scope of services to include Housing Program support
services, in the amount of $223,000.
C-10 Adopt Resolution Authorizing City Manager to Execute Second Amendment and Restated
San Joaquin County Regional Fire Dispatch Authority Joint Exercise of Power Agreement
and Appointing Fire Chief and Alternate to Serve on Board of Directors (FD)
Adopted Resolution No. 2019-10 authorizing the City Manager to execute Second Amendment
and Restated San Joaquin County Regional Fire Dispatch Authority Joint Exercise of Power
Agreement and appointing Fire Chief and Alternate to serve on Board of Directors.
C-11 Ado.t Resolution Authorizin. Cit Manager to Execute Statement of Work with Itron Inc.
for the Upgrade of the Itron Choice -Connect Fixed Network Software ($71,920) (CM)
Adopted Resolution No. 2019-11 authorizing the City Manager to execute Statement of Work with
Itron, Inc., for the upgrade of the Itron Choice -Connect Fixed Network Software, in the amount of
$71,920.
C-12 Appoint Michael Carouba and William Mitchell to the Parks and Recreation Commission;
Joseph Woelfel to the Senior Citizens Commission; Peter Rosado to the Site Plan and
Architectural Review Committee; Richard Blackston to the San Joaquin Council of
Governments Citizens' Advisory Committee; and Benjamin Plath to the Greater Lodi Area
Youth Commission; and Post for One Expiring Term on the Lodi Improvement Committee
(CLK)
Appointed Michael Carouba and William Mitchell to the Parks and Recreation Commission;
Joseph Woelfel to the Senior Citizens Commission; Peter Rosado to the Site Plan and
Architectural Review Committee; Richard Blackston to the San Joaquin Council of Governments
Citizens' Advisory Committee; and Benjamin Plath to the Greater Lodi Area Youth Commission;
and directed the City Clerk to post for one expiring term on the Lodi Improvement Committee.
C-13 Confirm Annual Appointment of City Council Members on Various Boards, Committees,
and Commissions (CLK)
Confirmed annual appointment of City Council Members on various boards, committees, and
commissions.
C-14 Adopt Resolution Approving Guidelines for Submission and Tabulation of Protests in
Connection with Rate Hearings Conducted Pursuant to Article XIIID, Section 6 of California
Constitution (Proposition 218) (CA)
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This item was pulled from the Consent Calendar at the request of a member of the public.
Mike Lusk, member of the public, expressed concern that the proposed water, wastewater, and
solid waste rates increases may be invalid under Proposition 218 based on legal opinions relating
to the cities of San Juan Capistrano and Lincoln. Further, Mr. Lusk suggested the City is not
within the 45 -day required public hearing notice timeframe based on when he received his
notice.
City Attorney Magdich clarified that the item before Council is not the public hearing on the rates;
rather, it is approval of the resolution setting forth guidelines for the submission of protests.
Mayor Pro Tempore Kuehne made a motion, second by Council Member Johnson, to adopt
Resolution No. 2019-12 approving guidelines for submission and tabulation of protests in
connection with rate hearings conducted pursuant to Article XIIID, Section 6 of California
Constitution (Proposition 218).
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
D. Comments by the Public on Non -Agenda Items
THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE
PUBLIC IS LIMITED TO FIVE MINUTES.
Public comment may only be made on matters within the Lodi City Council's jurisdiction
(Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.31). The
Council cannot take action or deliberate on items that are not on this agenda unless there
is an emergency and the need to take action on that emergency arose after this agenda
was posted (Government Code Section 54954.2(b)(2)). All other items may only be
referred for review to staff or placement on a future Council agenda.
Michael Lynn, member of the public, shared a recent experience with Comcast where it painted
locations of underground utilities on the street, sidewalk, and his lawn; however, despite
assurances from Comcast that the paint would be cleaned, the company instead painted solid
black over the markings. He expressed appreciation for Senior Engineering Technician
Denise Wiman for her assistance and willingness to cease issuing encroachment permits to
Comcast until it cleans the markings properly; however, Comcast has yet to rectify the situation or
contact him. He understands Comcast is monitored by the State but is outraged at what a public
company has done to the street. He suggested the only solution is to do a slurry seal on half of
the block.
Public Works Director Charlie Swimley explained it is standard practice for utility companies to
remove or cover markings it makes to locate underground utilities and the City of Lodi's
encroachment permits have strict requirements regulating that. Typically, most companies meet
those regulations, however, some, like Comcast, are more difficult to work with. He added that in
most situations, normal tire wear and elements will cause the markings to fade. He thanked
Mr. Lynn for bringing this to his attention.
Mike Lusk, member of the public, requested the status of his request from the January 16, 2019,
City Council meeting at which he submitted a formal request to vacate the election of Mayor and
Mayor Pro Tempore and revise the ordinance and protocols relating to the selection of those
positions.
City Attorney Magdich responded that staff is reviewing his statement and should have a
response to him early next week.
E. Comments by the City Council Members on Non -Agenda Items
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None.
F. Comments by the City Manager on Non -Agenda Items
None.
G. Public Hearings
G-1
Public Hearing to Consider Adopting Resolution Authorizing City Manager to Execute
Reimbursement Agreement RA -18-01 for Public Improvements Constructed with Lodi
Shopping Center (PW)
Notice thereof having been published according to law, an affidavit of which publication is on file
in the office of the City Clerk, Mayor Chandler called for the public hearing to consider adopting
resolution authorizing the City Manager to execute Reimbursement Agreement RA -18-01 for
public improvements constructed with Lodi Shopping Center.
Public Works Director Charlie Swimley provided a PowerPoint presentation regarding
Reimbursement Agreement RA -18-01 for public improvements constructed with Lodi Shopping
Center. Specific topics of discussion included overview, how we got here, big picture, basis of
contention, simple illustration, general contractor costs, indirect costs, right-of-way dedication
costs, FCB Homes basis of contention, storm drain allocations, sewer allocations, funding options
for storm drain, FCB Homes allocation breakdown, peer review, peer review findings, additional
review, summary, and recommendation.
In response to Council Member Johnson, City Manager Schwabauer explained that because the
parties never negotiated a conclusion to its agreement, the Council must make the decision in
this matter.
Mayor Chandler opened the public hearing for public comment.
Council Member Nakanishi reported he met with all the parties, Browman Development Company
(BDC), FCB Homes, and Elliot Homes, on two occasions and met with the City Manager
regarding this issue.
Mayor Chandler stated he too met with all three parties once and FCB Homes twice.
Mayor Pro Tempore Kuehne stated he met with both parties multiple times, as well as staff
multiple times.
Council Member Johnson reported he did not meet with any of the parties on this matter.
Daryl Browman with BDC stated he believes none of the contentions brought forward by FCB
Homes hold any weight against the opinions of City staff, two independent engineers, and legal
counsel. He stated BDC has consistently had a positive relationship with the City, has met all of
its promises, brought 750,000 retail feet to Lodi and $30 million in sales tax revenue, created
thousands of jobs, and brought a significant property tax increment to the City. He stated the
proposed RA has been supported by overwhelming evidence, including independent engineers,
peer review, and legal review all consistent with the City's ordinance, and he encouraged Council
to approve the agreement. It has taken almost 10 months from when the project was originally
scheduled to come before Council, there were countless meetings and cost breakdowns on the
matter, and all of FCB Homes arguments were evaluated. He pointed out that if the two
independent engineers, staff, City Attorney, and outside legal opinions supporting the RA are not
enough, then fairness and common sense should matter that BDC carried $6.2 million of this
project, which enabled FCB Homes and Elliot Homes to move their projects forward. FCB and
Elliot Homes paid four times less on a per -acre basis than BDC on this project.
Sandy Alvarez, member of the public, expressed her opposition based on her belief that those
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living in the county should not be charged in this matter.
Mr. Schwabauer explained that, if this RA is approved, county residents would only be charged if
they were to sell their property to someone who develops the land into a commercial use. If
property is sold as a residential home to another homeowner, there would be no fee. In essence,
the RA concept states that if property is developed above and beyond its current use, then fees
would be paid by everyone who benefited from the work. He assured Ms. Alvarez that this RA
would have no impact on her.
Price Walker with Elliot Homes agreed this RA has dragged on for almost a year and expressed
his concurrence with all that Mr. Browman stated regarding the matter. He added that he has
done over 25 RAs in the past and never experienced anything like this. He commended the
Public Works Director and staff for doing an amazing job in presenting a report easily
understandable to the public. He urged Council to approve the RA as recommended by staff.
Dennis Bennet, local developer, explained his involvement in the project and stated that all of the
parties worked through various items without finite numbers so the project could move forward,
but everyone knew there would come a time to divvy up costs. He stated that last March all of the
parties met regarding the RA and every party agreed with the document, including FCB Homes.
Days later, however, FBC's counsel threatened litigation if the RA was approved, which since
delayed the project by almost a year. He stated he believes the document is fair and complete,
verified by two outside consultants with no connection to either party, and encouraged Council to
approve the agreement as presented.
Steve Herum, attorney for Frontier Development, presented a handout (filed) with excerpts from
the Lodi Municipal Code (LMC) relating to reimbursements and Government Code section
definitions. He stated he believes the City's ordinance has not been followed and that a fair RA
should be based on the ordinance. Mr. Herum reviewed the associated LMC sections that set
forth filing an application for reimbursement, details on what applies, information on what can be
done with an RA, and items that can be reimbursed, adding those are the rules Council is being
asked to apply. He continued that the LMC limits reimbursements to improvements, which is
defined by the Government Code and refers to any street work and utilities to be installed. The
City's ordinance states it supplements the State ordinance and does not contain a local definition
of improvements; therefore, the State definition should be followed. Based on that, he believes
there are a number of items included in the RA that do not meet the State code of an
improvement and, as a result, should not be eligible for reimbursement. Further, the LMC
sections disagree with each other because one refers to applying for reimbursement for
improvements, while the other references construction costs. He further suggested the
independent engineer is not qualified to interpret the City's ordinance and pointed to the
engineer's cover letter acknowledging the City corrected him about his misinterpretation of the
ordinance regarding impact mitigation fees, after which he filed a new report. Mr. Herum stated
he believes this item is not ready for a Council decision and expressed his doubt about whether
or not the ordinance was followed correctly. Mr. Herum stated he submitted letters on January 8,
January 14, and February 2, 2019 asking to participate in the review process and further
suggested the application for reimbursement was not filed timely within the one-year period and
the public hearing not conducted within the required five-month timeframe. He believed the time
to act has passed and suggested either no reimbursement is owed, or all of the items added to
the RA after the time limit should not be included in the RA.
Mayor Pro Tempore Kuehne called point of order that the speaker was over his five minutes;
however, it was concluded that previous speakers were allowed additional time.
Mr. Herum concluded that this is unprecedented, it does not follow the City's ordinance, it creates
chaos and mischief leading to requests for huge reimbursements, and more disputes will occur.
He requested Council follow the ordinance and either deny this without prejudice and allow the
parties to continue to work on the RA or continue this and ask the parties to continue to work on
an RA that corresponds to the ordinance.
Council Member Johnson questioned that, if this went forward, where would the answers to his
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questions come from, to which Mr. Herum suggested a mediator be brought in who understands
the ordinance in order to come to a resolution. Mr. Johnson stated he understood that an offer of
arbitration was rejected, to which Mr. Herum responded that a mediator cannot bind parties while
an arbitrator makes a binding decision.
Council Member Johnson suggested that all parties in this matter be given an opportunity to state
their case even it goes beyond the five -minutes rule, as long as it is within reason.
Tom Doucette with FCB Homes stated the company is standing up for what it thinks is right. He
submitted an executive summary (filed) detailing the disputed issues and what FCB believes to
be the correct reimbursable cost based on how the City's ordinance should be followed. After
removing items unrelated to improvements, he believes the reimbursable amount is $3,638,420,
not $6,203,976.86 as claimed by BDC and Elliot Homes, a $2.5 million difference. Further, he
took exception to the statement that FCB is not paying its fair share because the math used to
calculate that statement took into account land outside of the area in question which drives down
FCB's per -acre cost. He stated that in reality FCB has the highest cost per acre to the north.
Council Member Nakanishi stated he relies on and must follow the advice of the City Attorney for
legal matters and, in this case, her opinion is important, as well as the statements made by the
City Manager and Public Works Director. Since April, staff made no recommendation because of
the attempt at mediation. A significant amount of time has been spent on this matter and it boils
down to differing interpretations of the ordinance. He stated he supports the staff
recommendation.
In response to Mayor Chandler, City Attorney Magdich asserted that she believes the City's
ordinance was appropriately applied to the RA.
Council Member Johnson stated Mr. Herum raised questions that he did not see in the
documentation relating to definition of improvements and legality of time for reimbursements and
questioned if those concerns were ever conveyed to the City. Mr. Schwabauer stated the City
received a letter from Mr. Herum with an argument about whether or not certain costs could be
recovered; however, he does not recall receiving arguments about the code definitions and
whether land costs should be included. With regard to the argument about oversizing, both
internal and outside counsel reviewed the argument. Ms. Magdich concurred this is the first time
some of the arguments have surfaced.
Mayor Pro Tempore Kuehne stated he agrees with Council Member Nakanishi that a significant
amount of time has been spent on this and he relies on advice from legal staff, which was backed
up by outside counsel. He stated he initially recommended arbitration, but that suggestion never
progressed. After further discussions, he suggested an independent peer review, which took
place and ultimately supported the position of City staff and the outside engineering firm. He
stated he is prepared to support staffs recommendation.
There being no further public comments, Mayor Chandler closed the public hearing.
Mayor Pro Tempore Kuehne made a motion to adopt resolution authorizing the City Manager to
execute RA -18-01 for public improvements constructed with the Lodi Shopping Center as
recommended by staff. The motion died for lack of a second.
Council Member Johnson stated he could not vote in support of this matter until some of the
points brought up by Mr. Herum, including timeliness, definitions, and questions about the LMC,
are answered. New arguments were brought forward, and he would like to see the results brought
back before making a decision.
In response to Council Member Nakanishi, Ms. Magdich stated that an abstention without a
conflict is considered a "yes" vote and silence is also recorded as a "yes" vote.
Ms. Magdich stated that, with regard to timing, BDC's application was timely and the delays were
a result in working with the applicants in terms of arguments against it and continuing the hearing
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for several months.
Mayor Chandler agreed that he would like to receive a response to the points raised by
Mr. Herum before making a decision.
Mr. Schwabauer summarized that Council would like a response relating to the timeliness of the
application and the statutory construction argument. Mayor Chandler added that he would also
like an answer regarding capital facilities fees, to which Mr. Schwabauer stated that is part of the
statutory construction argument.
Council Member Johnson stated that when this matter comes back to Council, it should focus
only on the points raised and not revisiting everything brought forward to date. Once Council
receives those answers, it should be prepared to make a decision.
Council Member Johnson made a motion, second by Council Member Nakanishi, to continue the
public hearing to Tuesday, March 12, 2019, at 7 a.m., to consider adopting resolution authorizing
the City Manager to execute Reimbursement Agreement RA -18-01 for public improvements
constructed with Lodi Shopping Center.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, and Mayor Chandler
Noes: Mayor Pro Tempore Kuehne
Absent: Council Member Mounce
RECESS
At 9:47 p.m., Mayor Chandler called for a recess, and the City Council meeting reconvened at
9:54 p.m.
H. Regular Calendar
H-1 Adopt Resolution Authorizing City Manager to Execute Improvement Agreement for
Gateway North Subdivision, Unit No. 1, Tract No. 3940 (PW)
City Manager Schwabauer recommended that Council continue this item to March 12, 2019, so
that it may be heard at the same time as the continued item under G-1 relating to the Lodi
Shopping Center Reimbursement Agreement (RA) based on the fact that the conditions in the RA
are relevant to the obligations set forth in this agreement. There are two sides threatening to sue
one another, and it is recommended that both items be discussed and acted upon at the same
time as they are interrelated. If Council entertains continuing the item, the public has a right to
comment on whether or not the matter should be continued.
Steve Herum, attorney representing Frontier Development, stated he believes the Subdivision
Map Act is clear that an agreement cannot be held back because an RA is not yet approved and
that doing so would be a violation of the Act. He pointed out that approval of this agreement does
not mean his client escapes responsibilities under the RA and he urged Council move forward
with this item.
Daryl Browman, Browman Development Company, stated that, out of fairness, this item should
not move forward before approval of the Lodi Shopping Center RA. The RA has been delayed for
10 months while this project continued to move forward, and approving this agreement now
sends a message that it is acceptable to change an RA that fits with the City's ordinance at the
detriment of those who spent millions of dollars on improvements. He stated it is not appropriate
to move forward with this item and requested Council continue this item to March 12, 2019, to be
discussed at the same time as the Lodi Shopping Center RA.
Council Member Johnson encouraged all Council Members to be at the March 12, 2019, Special
meeting and allow ample time in their schedules to address both items.
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Council Member Nakanishi made a motion, second by Mayor Chandler, to continue the matter to
March 12, 2019, at 7 a.m., to consider authorizing the City Manager to execute Improvement
Agreement for Gateway North Subdivision, Unit No. 1, Tract No. 3940.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
*NOTE: Mayor Pro Tempore Kuehne abstained from the vote (per Lodi Municipal Code Section
2.04.140, his vote is recorded as a "yes" vote).
H-2 Receive and File City's Comprehensive Annual Financial Report (Fiscal Year 2017/18) by
The Pun Group (CM)
Kenneth Pun with The Pun Group provided a PowerPoint presentation regarding the City's
Comprehensive Annual Financial Report for fiscal year ending June 30, 2018. Specific topics of
discussion included scope of work - financial statement audit, compliance audit, and agreed upon
procedures; AU -C required communications; audit responsibilities - management and auditors'
responsibilities; approach to audit; over view of financial statements; Comprehensive Annual
Financial Report; summary statement of net position; summary statement of activities; summary
balance sheet; summary statement of revenues, expenditures and changes in fund balance; key
financial indicators and pension/OPEB information; sales tax; net cost of services to tax
revenues; available fund balance to annual expenditures; GASB 68 - the pension standard;
GASB 75 - the OPEB standard; single audit report; summary schedule of expenditures of federal
awards; audit results; and Findings 2018-01 Procurement Policy.
Mayor Pro Tempore Kuehne complimented The Pun Group on a very thorough, easy to read
report, adding that he appreciated the format of the forward, economic condition, and outlook.
Mayor Pro Tempore Kuehne made a motion, second by Council Member Johnson, to receive and
file the City's Comprehensive Annual Financial Report (Fiscal Year 2017/18) by The Pun Group.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
H-3 Provide Direction for Request for Proposal and Review Committee for Auditing Services
(CM)
Deputy City Manager Andrew Keys provided a presentation regarding Request for Proposal and
review committee for auditing services. Specific topics of discussion included previous Request
for Proposal (RFP) process with staff sitting on the selection panel; selection of The Pun Group
based on its experience and professionalism in its reports; recommendation to Council to approve
three-year contract; Council's action to approve a one-year contract with staff returning for
direction on the RFP process with Council Members included on the selection panel; The Pun
Group's exceptional performance on this year's audit; The Pun Group's willingness to honor the
original proposal for a multi-year contract; and request for Council direction on how to proceed.
Mr. Keys stated the RFP has been prepared and is ready to be released. If Council would like to
be a part of the process, he suggested a selection panel be created with two Council Members
and key staff who would select the new auditors from there.
Council Members concurred The Pun Group did an amazing job on the audit and expressed a
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preference to honor The Pun Group's original contract.
Mr. Keys stated staff will bring the item back at the next meeting for Council approval of a
resolution approving the contract.
Mayor Pro Tempore Kuehne made a motion, second by Council Member Johnson, to continue
auditing services with The Pun Group and direct staff to return at the next meeting with a
resolution approving a contract with The Pun Group.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
H-4 Adopt Resolution Using Measure L to Add Six Police Officer Positions and Two Part -Time
Community Service Officer Positions, Including Related Costs, Within the Police
Department and to Add Three Firefighter Positions and One Battalion Chief Position,
Including Related Costs, Within the Fire Department, and Appropriating Funds ($980,720)
(CM)
Deputy City Manager Andrew Keys provided a presentation regarding the use of Measure L funds
to add six Police Officer positions and two part-time Community Service Officer positions within
the Police Department and three Firefighter positions and one Battalion Chief position within the
Fire Department. Specific topics of discussion included first recommendation from staff on
Measure L expenses; estimated annual revenue of $1.3 million in Fiscal Year 2018/19;
recommendations address ballot questions relating to police, fire, and other essential services;
recommendations that aim to address understaffing and increased volume of calls for service in
the Police Department and browned out Engine 1 and minimum staffing levels in the Fire
Department; recommendation includes related equipment and vehicles to meet the staffing
requests; timeliness of getting new officers into the March academy, trained, and on the streets
as soon as possible; Measure L funds still remaining in Fiscal Year 2018/19 for other needs; total
request for the Police Department of $548,000 this year and $897,000 ongoing; and total request
for the Fire Department of $418,000 in Fiscal Year 2018/10 with roughly 30 percent tied up in the
new positions going forward, which will be dependent on the one-time costs for training and
certifying the new positions in the academy.
Council Member Johnson expressed concern about the short-term use of overtime in the Fire
Department and suggested staff track it to ensure the new positions cut back on those hours. City
Manager Schwabauer stated in the beginning there will likely be a short term flip in overtime and
once the positions are filled it should be neutral, but he assured Council that staff will monitor
overtime in the Department.
Council Member Nakanishi made a motion, second by Council Member Johnson, to adopt
Resolution No. 2019-13 using Measure L to add six Police Officer positions and two part-time
Community Service Officer positions, including related costs, within the Police Department and to
add three Firefighter positions and one Battalion Chief position, including related costs, within the
Fire Department, and appropriating funds in the amount of $980,720.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and
Mayor Chandler
Noes: None
Absent: Council Member Mounce
I. Ordinances — None
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J. Adjournment
There being no further business to come before the City Council, the meeting was adjourned at
10:55 p.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
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